This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cintas Management Discusses Q4 2012 Results - Earnings Call Transcript

We are pleased to report record fourth quarter revenue of $1,054,000,000. In an increasingly sluggish U.S. economy, fourth quarter revenue grew 4.1% from last year's fourth quarter. Fourth quarter net income increased by 11.1% to $79 million, and earnings per diluted share were $0.60, a 22.4% increase over last year. Mike will provide more details shortly on the fourth quarter performance.

This fourth quarter concluded a very successful fiscal 2012 year for Cintas in which our revenue topped the $4 billion mark for the first time at $4,102,000,000 and our earnings per diluted share hit a record level of $2.27. Our employees, who we call partners, did a great job of executing our game plan throughout this past 12 months. Congratulations to our partners on their achievements this year.

We remain confident in our business' opportunities and our ability to execute our game plan. As such, during our fourth quarter, we purchased 3.3 million shares of Cintas stock at an aggregate cost of $129.6 million. Since these purchases were made so late in the fiscal year, they had no impact on our fourth quarter results. However, we expect it will positively increase fiscal 2013 earnings per diluted share by about $0.06. This impact is incorporated into our fiscal 2013 guidance. Our board authorized a $500 million share buyback program in October 2011, so we now have $370.4 million remaining of that authorization.

Now I would like to turn the call over to Mike for more details on the fourth quarter, after which I will provide additional comments on our fiscal 2013 guidance.

J. Michael Hansen

Thank you, Bill. As Bill mentioned, total revenue increased 4.1% from the fourth quarter of last year with total company organic growth being 4%. Total company gross margin for the fourth quarter was 42.1%, which is down from last year's fourth quarter gross margin of 42.8% mainly due to lower recycled paper prices. I will discuss these items in more detail by segment. Before doing so, please let me remind you that there are 66 workdays in our fourth quarter, which was the same as last year. Looking forward to fiscal 2013, our workdays will be as follows: 66 in the first quarter, 65 in the second quarter, 64 workdays in the third quarter and 66 in the fourth quarter. The total workdays in fiscal 2013 will be 261, which is one less than fiscal 2012. The difference occurs in the third quarter, where there were 65 workdays in fiscal 2012. The one less workday in fiscal 2013 will negatively impact fiscal 2013 total revenue growth by about 40 basis points.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs